Extension of Self Assessment Tax Return Deadline Announced
The deadline for filing the Self Assessment Tax return (SATR) has been extended by HMRC. In this article, we will walk you through what you need to know about this delay, how you can avoid late fees and why you should keep an eye on the increase in interest rates.
When is the Self Assessment deadline?
The deadline for the SATR usually comes around like clockwork on 31st January, but this year it has been extended to 28th February.
Want to file your Self Assessment Tax Return the good old fashioned way (paper)? Sorry, but this deadline has already been and gone. This was set for 31st October, so if you need to fill in your tax return this will have to be online.
Self Assessment tax return deadline extension
Earlier this year, HMRC announced the deadline had been extended to 28th February 2022 and that they wouldn’t charge:
- Late filing penalties for those who file online by 28 February 2022
- Late payment penalties for those who pay the tax due in full – or set up a payment plan – by 1 April 2022
This will give people extra time and will operate in the same way as the same waivers last year, but with one small difference. Interest will be charged at 2.75% on late payments beginning 1st February and – due to the Bank of England increasing interest rates – this will rise to 3% on 21st February.
It is best for you to pay as soon as possible. Interest is charged on the total amount of the balance, so even if you reduce your balance by a small bit, this will affect how much interest you pay.
HMRC has extended the deadline as a way of helping businesses deal with the ongoing pressures of COVID-19. Lucy Frazer, Financial Secretary to the Treasury, said:
“We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs.
Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.”
Changes to the late payment penalty
Self Assessment payments were due on 31st January and – even with the deadline extension – interest will be charged on unpaid amounts from 1st February. Unpaid taxes that are still outstanding on 3rd March are normally subject to a 5% late payment penalty.
This year, like last year, HMRC is giving customers more time to pay or set up a payment plan. If you pay your tax or set up a payment plan by midnight on 1 April, you will not be charged the late payment penalty. At GOV.UK, individuals can pay their tax bills or set up a monthly payment plan.
Here to help
Our tax experts here at Brian Alfred can help take the hassle out of completing your tax return and claiming your tax rebate. We specialise in getting the maximum out of your tax rebate.
If you would like to speak to us about your Self Assessment tax return, please request a callback.